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MRO TEK bags order worth Rs 30 mn

MRO TEK announced today the break-through in one of the products developed in its in-house R&D facility and recently commercialized, by way of a confirmed order worth of Rs 30 million from one of the large and reputed services providers of the country.

The said order will be executed during the last quarter of the financial year.

MRO-TEK, headquartered at Bangalore with branch offices in Mumbai and Delhi, was established in 1984. It is a manufacturer of networking products with the current revenue of Rs 1.44 billion, which grew from Rs 0.2 million in 1985. Its main focus is on access networking, alliance with the global best, thrust on R&D and customized solutions leveraged on local manufacturing. It entered into joint venture with RAD in 1996 in order to manufacture RAD products in India.

it has touched Rs.110/-
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MRO-TEK CLINCHES NTT COMM DEAL
Bangalore
The Hindu Business Line

MRO-TEK has bagged a pilot order for its optical access products from NTT Communications, Japan, which the company said has come as recognition to its research and development capability to develop products for the global market.

The company will supply Zambica and Fcat optical access products to NTT Communications; the $9.5-billion entity providing international telecommunications services including IP network and other data communications.

Zambica is used for interconnecting optical network segments operating at different wavelengths like 1310 nanometer, 1550 nm etc.

A cost effective product, it gives the service provider to use the customers existing fibre wavelength by converting it into their wavelength.

Fcat is a rugged and reliable Fast Ethernet Managed Media converter providing seamless manageable extension of Fast Ethernet on single mode/multimode fibre ranging from 2 km to 100 km.

S. Narayanan, Chairman and Managing Director of MRO-TEK, said: “NTT Communications’ pilot order is a testimony to our R&D team and our vision to develop optical access products for the market in India and abroad.”

The company has a 60-70 percent market share for Fcat in India, where leading service providers like VSNL are major customers.

It recently launched IRIS, a completely managed passive optical transport system power to multi-gigabit network services.

Another product, Mogra, introduced recently is aimed at the online gaming and IPTV market, which require faster connectivity, especially at the last mile.

Narayanan said the new products are expected to contribute seven to eight percent to the company’s topline.

 

The company has been making losses for a few quarters now. It had a pretty good track record from 2003 to 2006 both in terms of topline and bottom line. From 2007 the results were bumpy and 2010 has been mostly loss making. The management did do a small buy back a year ago, and believes it is going to swing to profits next year (see http://www.bloomberg.com/news/2010-08-19/mro-tek-ntt-data-s-indian-supplier-aims-to-post-profit-next-fiscal-year.html).

The company has good dividend paying record and is debt free. Is this a turnaround story? If the company turns profitable next year then the current price of 23 appears cheap, excellent dividend yield and a good value pick.

P.S: I held this stock for about a year and exited above 30 without much gains.